| Course | MAN-3720 International Management |
|---|---|
| Module | Module 5 |
| Paper type | Module 5 written assignment: international market entry and management strategies |
| Length | About 594 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | Bachelor of Science in Business Administration |
| Updated | October 2026 |
Free sample paper for MAN 3720 Module 5
Control Without Ownership: Entering Vietnam Through an Exclusive Distributor
Student Name
Bachelor of Science in Business Administration, Thomas Edison State University
MAN-3720: International Management
Mentor Name
Month Day, Year
Control Without Ownership: Entering Vietnam Through an Exclusive Distributor
Introduction
The company has decided that Vietnam will be its first export market and that it will export finished purifiers from New Jersey for now. The remaining question is how to enter: through whom, with what control and at what cost. What follows weighs the options, picks one and sets out how to run it.
Comparing Entry Modes
| Entry mode | Control | Commitment and cost | Main risk |
|---|---|---|---|
| Indirect exporting through a U.S. trading company | Very low | Very low | No knowledge of the market; brand left to others |
| Exclusive distributor | Moderate, through the contract | Low | Dependence on one partner |
| Licensing a local manufacturer | Low over quality | Very low | Design copying; a future competitor |
| Joint venture with a local firm | Shared | Moderate to high | Conflict over goals and control |
| Sales subsidiary | High | High | Cost and slow learning of the market |
Two Research Perspectives
Anderson and Gatignon (1986) applied transaction cost reasoning to entry modes. They proposed that firms should take more control when their assets are specialized and valuable, such as proprietary technology, when the market is uncertain and when the risk of a partner acting in its own interest at the firm's expense is high, and less control when those conditions are weak, because control is costly. Our design is valuable, which argues against licensing, but our sales volume is small and uncertain, which argues against the high cost of a subsidiary or joint venture.
Johanson and Vahlne (2009) revised their model of how firms internationalize, stressing that firms learn about foreign markets through relationships in business networks and increase commitment as their knowledge and trust grow. For a first market, this argues for an entry mode that builds knowledge and a relationship we can deepen later.
The Choice
An exclusive distributor fits both perspectives. It keeps commitment low while the market is uncertain, protects the design because the distributor sells finished units rather than making them, and builds a relationship and market knowledge that could support deeper commitment later. The distributor that approached us already sells kitchen appliances to retailers in the south and has offered to handle product registration.
Exclusivity is a concession, so the contract will be performance-based. Exclusivity will cover southern Vietnam for two years and will continue only if the distributor meets minimum annual purchases of 4,000 units in the first year and 8,000 in the second. The contract will forbid improper payments to officials, require approval of marketing materials using our brand and give us access to sales data by channel.
Managing the Partnership
A contract gives control on paper; managing the partner gives it in practice. We will share a sales plan with quarterly targets, train the distributor's sales staff on how the purifier works and how to demonstrate it, and hold quarterly reviews, alternating between video calls and visits. The OpenStax management text discusses how managers working across cultures must adapt their style to the people they work with (Bright et al., 2019); given the importance of relationships in Vietnam, our owner will attend the first two reviews in person. If after two years sales exceed the second-year target and the market looks durable, we will consider a joint venture with the distributor or a small sales office.
Conclusion
An exclusive distributor gives the company control without ownership in its first foreign market. Transaction cost reasoning and the network view of internationalization both support starting with low commitment and building knowledge, and a performance-based contract with active management gives the company the control it needs to protect its brand.
References
Anderson, E., & Gatignon, H. (1986). Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 17(3), 1-26. https://doi.org/10.1057/palgrave.jibs.8490432
Bright, D. S., Cortes, A. H., Hartmann, E., Parboteeah, K. P., Pierce, J. L., Reece, M., Shah, A., Terjesen, S., Weiss, J., White, M. A., Gardner, D. G., Lambert, J., Leduc, L. M., Leopold, J., Muldoon, J., & O'Rourke, J. S. (2019). Principles of management. OpenStax.
Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411-1431. https://doi.org/10.1057/jibs.2009.24
What the MAN 3720 Module 5 instructions ask for
The entry strategy module of MAN-3720 is matched here with the fifth written assignment, since the public syllabus gives no dates for the five. Weigh the ways in, from exporting and licensing to franchising, partnering and owning outright, by how much control, money and risk each brings, pick one for one market and say how you will run it. Support the choice with the open textbooks and at least one research article on entry modes. A table makes comparisons easier to follow, but the reasoning must be in the text.
How the MAN 3720 Module 5 example is put together
The paper starts from settled decisions, the market and the choice to export, and narrows to the question of entry mode. A five-row table compares modes on control, commitment and cost, and risk. Anderson and Gatignon's transaction cost view and Johanson and Vahlne's network model are applied in turn, and both point toward low commitment with a relationship that can grow. The choice is an exclusive distributor, backed by contract terms on territory, minimum purchases, payments to officials, brand approval and sales data. A management section sets targets, training and quarterly reviews, cites the management text on balancing control and trust and names the condition for deeper commitment. A condition for deeper commitment closes the plan, so the entry mode is treated as a first step rather than a permanent choice.
Where the marks sit in the MAN 3720 Module 5 rubric
Mentors grade this assignment on understanding of entry modes, a reasoned choice for a specific market, use of research, a realistic management plan and clear writing in APA style. Credit goes to papers that compare modes on the same criteria and choose with reasons tied to the firm's situation. Applying a research perspective, rather than only listing advantages and disadvantages, shows analysis. Contract terms and management routines that make the chosen mode work show managerial judgment. Planning how the mode could change as the firm learns shows understanding of internationalization as a process. Mentors also look for contract terms written specifically enough to enforce, such as territory, minimum volumes and data sharing, because vague terms give no real control.
Common MAN 3720 Module 5 mistakes, and how to avoid them
Students lose marks by listing every entry mode with generic pros and cons and never choosing, by choosing a joint venture or subsidiary for a small firm without considering cost, or by ending at the choice without planning management. Compare the modes on the same criteria for one market. Use a research perspective to justify the choice. Write the key contract terms and management routines, and say what would lead you to change modes later. A free first draft of your MAN-3720 Module 5 assignment can be written on your company's market. Name the event that would lead you to change the mode later, such as sales passing a set level.
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MAN 3720 Module 5 questions, answered
Where can I find a free MAN 3720 Module 5 sample paper?
The paper above chooses an exclusive distributor for a New Jersey water purifier maker entering Vietnam and plans how to manage it.
What are the main international entry modes?
Selling through exporters, licensing a maker, franchising, forming a joint venture or setting up a fully owned unit, ranked roughly from least to most control and cost.
What does transaction cost theory say about entry modes?
Firms should take more control when assets are valuable and specialized and partners might act opportunistically, and less when control costs more than it protects.
Why use performance terms in an exclusive distribution contract?
Exclusivity removes competition for the distributor, so minimum purchases protect the exporter if the distributor underperforms.
What does the revised Uppsala model emphasize?
Learning and trust built through business relationships, with commitment increasing as knowledge grows.